Netflix, Inc. (NASDAQ:NFLX) is raising funds, but it may be playing more defense than offense. That’s bearish for Netflix stock

Netflix, Inc. (NASDAQ:NFLX) is raising funds, but it may be playing more defense than offense. That’s bearish for Netflix stock

Netflix, Inc. (NASDAQ:NFLX) is raising funds, but it may be playing more defense than offense. That’s bearish for Netflix stock

By and large, investors shrugged off the fact that Netflix (NASDAQ:NFLX) will be taking on another $2 billion of debt. Indeed, with Netflix stock jumping another 1.2% on Tuesday following Monday’s 4.7% post-earnings gain, the market almost seems to be celebrating the streaming giant’s indebtedness.

Sooner or later though, debts have to stop growing and start being paid off. A company can’t burn cash in perpetuity.

Fans  of Netflix stock are generally quick to argue that that day is coming, sooner or later. With “just a little more subscriber growth,” they say, NFLX will be self-sustaining and will be able to fund its content-creation operations without borrowing.

Pulling off that feat, however, has become significantly more difficult now than it would have been just a few months ago.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 388.43.

The projected lower bound is: 348.56.

The projected closing price is: 368.50.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.5101. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.94. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 66 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 54. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.

Rex Takasugi – TD Profile

NETFLIX INC closed down -5.900 at 368.330. Volume was 37% below average (neutral) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
374.490 374.760 365.700 368.330 6,255,496

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 364.40 361.59 337.12
Volatility: 49 35 55
Volume: 11,103,066 7,577,079 11,271,469

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NETFLIX INC is currently 9.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NFLX.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on NFLX.O and have had this outlook for the last 3 periods.

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